LONDON SECURITY PLC interim statement for the six months ended 30 June 2003

Transcription

1 LONDON SECURITY PLC interim statement for the six months ended 30 June 2003

2 EUROPEAN GROUP BRANDS 1 Corporate Statement 2 Chairman s Statement 4 Consolidated Profit and Loss Account 5 Consolidated Balance Sheet 6 Consolidated Cash Flow Statement 7 Notes 8 Directors and Advisers 9 Group Companies

3 LONDON SECURITY PLC INTERIM STATEMENT CORPORATE STATEMENT London Security plc is a leader in Europe s fire security industry. Each year we provide fire protection for over 250,000 customers through our local presence in the United Kingdom, Holland, Belgium, Switzerland and Austria. Our services and products are commercialised through the well and long established brands of Nu-Swift, Ansul, Total, Premier and Master. The unique styling of our products makes them immediately recognisable to both the industry and customers alike. We aim to achieve the highest levels of service and product quality through constant training of our employees to the most stringent servicing standards and the development of the highest performance rated fire products. These activities are performed whilst considering the preservation of the environment. From the largest blue chip companies, to governments and private individuals, our customers know that our name stands for integrity of service by the best trained and qualified professionals with quality products that have achieved the highest performance ratings.

4 2 LONDON SECURITY PLC INTERIM STATEMENT 2003 CHAIRMAN S STATEMENT THE GROUP HAS ENJOYED SUSTAINED GROWTH SINCE OPERATING PROFIT AT 20% OF TURNOVER AND EBITDA AT 28% OF TURNOVER ARE EXCEPTIONAL RESULTS. Financial highlights of the results for the six months ended 30 June 2003 compared with the first half of 2002 are as follows: Turnover increased by 9% to 26.7 million Operating profit increased by 3% to 5.4 million Earnings before interest, taxation, depreciation and amortisation ( EBITDA ) increased by 4% to 7.6 million Net gearing reduced from 10% at 31 December 2002 to 3% Interim dividend increased by 50% to 3.0p Review Six months to 30 June million million million million Turnover Operating profit EBITDA The results for the first six months of 2003 have been satisfactory despite the challenging market conditions. These results have benefited from the positive impact of the companies acquired in 2002 (Asco, CFP Cavelle and HUG) and exchange rate movements which have also impacted favourably. More importantly we report that the integration of Asco into the Group is on plan both operationally and financially. The cost base has been reduced in 2003 through better purchasing of our raw materials and this is expected to impact on the profit and loss account in the second half of the year. The Group is also actively developing new improved ranges of extinguishers and plans to launch these products in the New Year are on schedule.

5 LONDON SECURITY PLC INTERIM STATEMENT The Company has obtained ISO certification in line with our previously stated environmental policy. As the table opposite illustrates, the Group has enjoyed sustained growth since Operating profit at 20% of turnover and EBITDA at 28% of turnover are exceptional results and far greater than those enjoyed by our competitors. These figures illustrate our ability to manage service businesses and, as such, it remains a principal aim of the Group to acquire companies in the fire and security sectors to complement and build upon the organic growth demonstrated in recent times. In this period, the management and staff have continued to perform well and I would like to express thanks and appreciation for their contribution. Dividends An interim dividend of 3.0p (2002: 2.0p) per ordinary share is proposed, payable on 12 November 2003 to shareholders on the register as at 10 October Prospects The outlook for the second half of 2003 is cautiously optimistic. J.G. Murray Chairman 30 September 2003

6 4 LONDON SECURITY PLC INTERIM STATEMENT 2003 CONSOLIDATED PROFIT AND LOSS ACCOUNT Unaudited Unaudited Audited 6 months 6 months year ended to 30 June to 30 June 31 December Turnover 26,695 24,520 48,078 Cost of sales (4,219) (3,723) (7,288) Gross profit 22,476 20,797 40,790 Distribution costs (9,942) (8,893) (18,079) Administrative expenses (7,172) (6,679) (13,433) Operating profit 5,362 5,225 9,278 EBITDA* 7,638 7,319 13,694 Depreciation (864) (780) (1,735) Amortisation of goodwill (1,412) (1,314) (2,681) Operating profit 5,362 5,225 9,278 Income from fixed asset investments Net interest payable and others (414) (577) (946) Profit on ordinary activities before taxation 5,066 4,757 8,443 Taxation (2,023) (2,076) (3,840) Profit on ordinary activities after taxation 3,043 2,681 4,603 Dividends (434) (290) (1,014) Retained profit 2,609 2,391 3,589 Basic earnings per ordinary share 21.0p 18.5p 31.8p Adjusted earnings per ordinary share (note 2) 30.8p 27.6p 50.3p Dividend per ordinary share 3.0p 2.0p 7.0p All of the above results arose from continuing operations * Earnings before interest, taxation, depreciation and amortisation

7 LONDON SECURITY PLC INTERIM STATEMENT CONSOLIDATED BALANCE SHEET Unaudited Unaudited Audited as at as at as at 30 June 30 June 31 December Fixed assets Intangible assets 46,044 46,576 47,128 Tangible assets 7,684 6,807 7,363 Investments ,798 53,453 54,561 Current assets Stocks 3,821 3,284 3,425 Debtors 11,408 10,504 9,740 Cash at bank and in hand 12,296 11,253 10,303 27,525 25,041 23,468 Creditors: due within one year Finance debt (3,781) (3,179) (3,503) Other creditors (14,682) (15,461) (13,383) (18,463) (18,640) (16,886) Net current assets 9,062 6,401 6,582 Total assets less current liabilities 62,860 59,854 61,143 Creditors: due after more than one year Finance debt (10,158) (11,864) (11,255) Provisions for liabilities and charges (1,761) (1,755) (1,907) (11,919) (13,619) (13,162) Net assets 50,941 46,235 47,981 Capital and reserves Called up share capital 1,449 1,449 1,449 Share premium 27,476 27,476 27,476 Capital redemption reserve Merger reserve 2,033 2,033 2,033 Profit and loss account 19,868 15,162 16,908 Total equity shareholders funds 50,941 46,235 47,981

8 6 LONDON SECURITY PLC INTERIM STATEMENT 2003 CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited Audited 6 months 6 months year ended to 30 June to 30 June 31 December Net cash inflow from operating activities 7,505 8,084 14,980 Return on investments and servicing of finance Interest received Interest paid (379) (522) (889) Dividends received Net cash outflow from return on investments and servicing of finance (181) (335) (574) Taxation Corporation tax paid (1,700) (769) (4,034) Capital expenditure Payments to acquire intangible fixed assets (190) (52) Payments to acquire tangible fixed assets (1,137) (1,402) (3,343) Receipts from sales of tangible fixed assets Net cash outflow for capital expenditure (1,162) (1,314) (2,550) Acquisitions and disposals Payments to acquire subsidiary undertakings (66) (2,714) Cash acquired with subsidiary undertakings 331 Net cash outflow for acquisitions (66) (2,383) Equity dividends paid to shareholders (724) (44) (870) Net cash inflow before use of liquid resources and financing 3,738 5,556 4,569 Financing Purchase of own shares (171) New long-term loans 237 1,350 Repayment of long-term loans (1,811) (1,595) (2,908) Net cash outflow from financing (1,745) (1,595) (1,558) Increase in cash and equivalents 1,993 3,961 3,011

9 LONDON SECURITY PLC INTERIM STATEMENT NOTES 1. Nature of Information The financial information contained in this interim statement does not constitute statutory accounts within the meaning of section 240 of the Companies Act The financial information for the six months ended 30 June 2003 is unaudited and has been prepared on the basis of the accounting policies set out in the Group s 2002 Report and Accounts. Statutory accounts for the year ended 31 December 2002 have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain a statement under sections 237(2) or 237(3) of the Companies Act Earnings per Share The calculation of basic earnings per ordinary share is based on the profit on ordinary activities after taxation of 3,043,000 (2002: 2,681,000) and on 14,485,232 (2002: 14,487,316) ordinary shares, being the weighted average number of ordinary shares in issue during the period. The calculation of adjusted earnings per ordinary share is based on the above weighted average and on adjusted earnings which comprise: Six months Six months Year ended to 30 June to 30 June 31 December Profit on ordinary activities after taxation 3,043 2,681 4,603 Eliminate effect of: Amortisation of goodwill 1,412 1,314 2,681 Adjusted earnings 4,455 3,995 7,284 Basic earnings per ordinary share 21.0p 18.5p 31.8p Adjusted earnings per ordinary share 30.8p 27.6p 50.3p 3. Taxation The taxation charge for the period (39.9%) appears high due principally to the non-deductibility for taxation purposes of the amortisation of goodwill. 4. Profit and Loss Account Profit and Loss Account 000 As at 1 January ,908 Retained profit for the period 2,609 Exchange adjustments 522 Purchase of own shares (171) As at 30 June ,868

10 8 LONDON SECURITY PLC INTERIM STATEMENT 2003 DIRECTORS AND ADVISERS Jacques Gaston Murray Chairman Jean-Jacques Murray Executive Director Jean-Christophe Pillois Finance Director Emmanuel Sebag Operations Director Henry Shouler Senior Independent Non-Executive Director Michael Gailer Independent Non-Executive Director Secretary and Registered Office Richard Pollard Wistons Lane Elland West Yorkshire HX5 9DS Registered Number Registered Auditors PricewaterhouseCoopers LLP Benson House 33 Wellington Street Leeds LS1 4JP Registrars Capita Registrars 34 Beckenham Road Beckenham Kent BR3 4TU Bankers Lloyds TSB Bank Plc Dexia Bank N.V. Solicitors Walker Morris Kings Court 12 King Street Leeds LS1 2HL Salans Clements House 14/18 Gresham Street London EC2V 7JE Stockbrokers Teather & Greenwood Beaufort House 15 St. Botolph Street London EC3A 7QR Nominated Advisers Ernst & Young P O Box 61 Cloth Hall Court 14 King Street Leeds LS1 2JN

11 LONDON SECURITY PLC INTERIM STATEMENT GROUP COMPANIES United Kingdom Nu-Swift International Limited Wistons Lane Elland West Yorkshire HX5 9DS Tel: Fax: customer.service@nuswift.co.uk Website: The General Fire Appliance Company Limited Wistons Lane Elland West Yorkshire HX5 9DS Tel: Fax: L.W. Safety Limited Unit 12 Derby Road The Metropolitan Centre Greenford Middlesex UB6 8UJ Tel: Fax: customer.service@lwsafety.co.uk Website: Hoyles Fire & Safety Limited Sandwash Close Rainford Industrial Estate Rainford St. Helens Merseyside WA11 8LY Tel: Fax: customer.service@hoylesfire.co.uk Website: Asco Extinguishers Company Limited Melissa House Unit 3, Festival Court Brand Street Glasgow G51 1DR Tel: Fax: sales@asco.uk.com Website: CFP Cavelle Limited Weatherstones Business Centre Hanns Hall Road Neston South Wirral CH64 7UF Tel: Fax: info@cfpcavelle.co.uk Website: Austria Total Firestop G.m.b.H. Percostrasse Wien Tel: Fax: info@total.at Belgium Ansul S.A. Industrialaan 35 B-1702 Groot-Bijgaarden Tel: Fax: mail@ansul.be Website: All-Protec N.V. Bogaertstraat Knesslare Tel: Fax: info@all-protec.be Importex S.A. 42 rue de l eglise 4710 Lontzen Herbesthal Tel: Fax: info@importex.be Dimex Technics S.A. 42 rue de l eglise 4710 Lontzen Herbesthal Tel: Fax: info@dimex-technics.be Holland Ansul B.V. Platinastraat 14 NL 8211 AR Lelystad Tel: Fax: info@ansul.nl Nu-Swift Brandbeveiliging B.V. Ringoven TR Arnhem Tel: Fax: nu-swift@planet.nl Switzerland Feuerloscher Nu-Swift (Schweiz) AG Bahnhofplatz Biel/Bienne Tel: Fax: info@nu-swift.ch Total TF AG Bahnhofplatz Biel/Bienne Tel: Fax: info@total.ch Maclin S.A. Chemin de la Mairie, Cologny Tel: Fax: info@maclin.ch HUG S.A. Postfach BS Basel Tel: Fax: hug@datacomm.ch Website: